Developing Border Gate Economy- Key Task of Lang Son Province

Lang Son province is located the North East of Vietnam, bordering 223 km with Guangxi, China. It has two international border gates for railway and highway, two main border gates, several joint markets and border entries most favourable for transport and trade between China, ASEAN and other countries.

With successful renovation and international economic integration in Vietnam, Lang Son is becoming an important transit for goods and services in the region. Trade and service are regarded as spearheaded sectors and border gate economy as driving force contributing to socio-economic development and national defence and security. The province also plays an important role in the development of the Northern key economic region.

So far the province has implemented Prime Minister’s decisions 740/TTg of September 6, 1997 on the development of Dong Dang – Lang Son economic zone to 2010; 748/TTg of September 11, 1997 on application of some experiments on border gate region; and 53/2001/QD/TTg of April 19, 2009 on border gate economic region. Over the past 10 years, together with the people of all ethnic nationalities and the central government, Lang Son authorities mobilized all human and natural resources to develop socio-economic infrastructure in Lang Son city, Dong Dang town, Cao Loc district and border gates and villages. As a result, a comprehensive socio-economic infrastructure has been established. Urban areas and border gate economic regions have become important links for economic, trade and tourist developments with Guangxi province of China and promoted economic growth and transformation in Dong Dang – Lang Son region. The network of border gates has been upgraded, promoting import-export and business activities, improving living conditions of the local people and reinforcing national defence and security.

However, such development still fails to meet the demand of the current international economic integration. Trade, service and tourism are still dependent on the fluctuations of local and foreign markets. There are still shortfalls in management and policy and mechanism remain incomplete. The mobilization of resources for development remains limited. Socio-economic infrastructure remains weak.

Under those circumstances, Lang Son has focused on the establishment of Dong Dang – Lang Son border gate economic region to develop the comparative advantages of natural conditions and geographical location to promote international trade and socio- economic development of the province.

On April 28, 2008, the Prime Minister by Decision 55/2008.QD-TTg approved the development plan of Dong Dang – Lang Son border gate economic region, followed by Decision 138/QD-TTg of October 14, 2008 on the establishment and statute, and 1601/QD-TTg of November 7, 2008 Management Board of Dong Dang – Lang Son border gate economic region. The border gate economic region with a total area of 394 sq. km covering Lang Son city, towns of Dong Dang and Cao Loc, and several communes of Van Lang, Van Quan and Chi Lang districts.

The main objective is to build and develop Dong Dang – Lang Son border gate economic region into a driving force and a key economic region to promote trade and service so as by 2015 to join the rectangular economic axis of Lang Son – Hanoi – Haiphong – Quang Ninh. Dong Dang – Lang Son will play an important role in the economic corridor and economic ring of the Tonkin Gulf, exploiting the advantages of border gates, developing dynamic trade and service in the region, promoting economic transformation, increasing border security and living conditions and ensuring friendly cooperation between Vietnam and China.

Fully aware of the importance of Dong Dang – Lang Son border gate economic region for socio-economic development of Lang Son as well as the economic corridor Lang Son – Hanoi – Haiphong – Quang Ninh, Lang Son authorities in conjunction with the central government have focused on the implementation of key tasks: Submitting to the Prime Minister for approval of the development plan of Dong Dang – Lang Son region; completing development projects of Dong Dang – Lang Son region until 2020; adjusting the development plan to 2015 with vision to 2020; preparing detailed plan for development of services; drafting policy and preferential treatment in line with Prime Minister’s decisions on investments, taxation, banking credits, land use, import-export and entry-exit visas; improving investment environment, first of all investment promotion and information on preferential treatment, list of investment projects, land clearance and work place, infrastructure development and land compensation; mobilizing all resources of local and foreign investors to develop infrastructure and business activities.

In addition, Lang Son will increase cooperation with Guangxi (China) to develop border gate economy, especially Dong Dang – Pingxiang border economic cooperation, the main area of the economic corridor Nanning – Lang Son – Hanoi – Haiphong – Quang Ninh. It will help business communities of the two countries as well as those of the third party to increase cooperation in the economic corridor and the cooperation between ASEAN and China. The target is to increase GDP of the corridor by 1.2 – 1.4 times that of Vietnam and import-export value to US$2 billion and US$4.5 – 5 billion by 2015 and US$10 billion by 2020.

With comparative edge in natural conditions and geographical location of the economic corridor and economic ring of the Tonkin Gulf as well as policy and preferential treatment, Dong Dang – Lang Son border gate economic region can play an important role in socio-economic development of Lang Son and economic corridor Lang Son – Hanoi – Haiphong – Quang Ninh.

To attain that goal, Lang Son needs the guidance and support of the central government, related agencies, regions and province as well as cooperation of local and foreign investors. Lang Son authorities and people will make every effort and concentrate all resources for socio-economic development of the province.